Managerial Economics Quiz 8 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Which of the following factors affect the supply?

Correct Answer: D) All the above.

2. Holding other factors constant.

Correct Answer: D) Ceteris Paribus.

3. ..... is the objective of every business firm

Correct Answer: C) Maximising the profit.

4. The quantity demanded of Pepsi has decreased. The best explanation for this is that:

Correct Answer: A) The price of Pepsi increased.

5. BEP is a no loss but profit point

Correct Answer: B) False.

6. It is the terms that refers to the behavior of customers as they interact with one another in competitive markets.

Correct Answer: C) Both A and B.

7. Anti Dumping Duty is a protectionist tariff that a country uses to protect

Correct Answer: B) Domestic industry.

8. It helps in covering the gap between the problems of logic and the problems of policy

Correct Answer: B) Managerial Economics.

9. Managerial Economics applies microeconomics theories and techniques in management decision.

Correct Answer: A) True.

10. The demand for labour slopes down and to the right because of:

Correct Answer: A) The law of diminishing marginal returns.

11. When a variable input (resources, capital) is added to a fixed input and output decreases

Correct Answer: C) Diminishing Marginal Returns.

12. What do you mean by the supply of goods?

Correct Answer: D) Quantity of the goods offered for sale at a particular price per unit of time.

13. The Value of the firm is equal to

Correct Answer: B) The present value of all future revenues.

14. When workers enjoy leisure, they also enjoy .....

Correct Answer: B) Income.

15. A group of firms that gets together to make price and output decisions is called:(a) (b) Concentrated Industry (c) An Oligopoly (d) A Cartel

Correct Answer: D) A Cartel.

16. Buyers as a group determine the demand for the product.

Correct Answer: A) True.

17. The change in total costs arising from a change in the managerial control is called

Correct Answer: C) Marginal cost.

18. In a competitive market equilibrium, price and quantity freely adjust to the forces of demand and supply.

Correct Answer: A) True.

19. It is the stage model of change also known as the 'good old days'

Correct Answer: D) COST PLUS.

20. In perfect competition, products are

Correct Answer: B) Homogeneous.